Global Audit Firm, Ernst & Young Launches Tool for Crypto Taxation Calculation

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Global Audit Firm, Ernst & Young Launches Tool for Crypto Taxation Calculation

March 5, 2019

cryptoBig four auditing firm, Ernst & Young has launched an accounting and taxation tool for cryptocurrency holdings and is targeted to both retail and institutional level clients. The tool is called EY Crypto-Asset Accounting and Tax (CAAT) and facilitating accounting & tax calculations for cryptocurrency transactions and services are currently limited to the United States currently.

The tool will take out crypto transactions related information from virtually all major exchanges, and then it will consolidate data from multiple sources. The tool will automate the production of various reports and dashboards, helping to prepare IRS tax returns for crypto assets. 

Marna Ricker, EY Americas vice chair of tax services commented on the launch of the new crypto tax tool:

EY CAAT exemplifies our commitment to exceptional client service in a changing landscape. We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto-asset space. I appreciate the efforts of the EY Foundry and professionals across our practice who have made this breakthrough.”

Michael Meisler, partner and EY global blockchain tax leader also added:

“The initial validation we have received from the market has been phenomenal, but it only represents the beginning. EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”

The cryptocurrency sector is witnessing a rapid adoption and growth, and with this, the need for an efficient and proper declaration of digital asset tax filing has become necessary. EY is not the only firm, which is targetting this space and building new tools to simplify clients effort.

 

In January, US’s leading crypto exchange, Coinbase has also ventured into this space and has integrated TurboTax, the tax filing system built by Intuit Consumer Tax Group to professionally handle all the taxation related issues regarding cryptocurrencies.

 

Chirag Patel, EY foundry leader, also added:

“The world of crypto-assets and cryptocurrency investing continues to evolve. It is the Foundry’s mission to stay ahead of the market as best that we can and to launch new digital solutions and digital businesses to help our clients do the same. EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry,”

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